Question

In: Finance

The power of ratios lies in the fact that:________________________________________________________________________________________________________________________________________________ What are the three ways that ratios...

The power of ratios lies in the fact that:________________________________________________________________________________________________________________________________________________
What are the three ways that ratios can be compare to:
__________________________________
__________________________________
__________________________________

What are the four categories of ratios that managers and other stakeholders use:
__________________________________
__________________________________
__________________________________
__________________________________

What is the formula used to calculate the Gross Margin percentage
A negative trend in gross margin typically indicates:
___________________________________
___________________________________
What is the formula used to calculate Operating Margin percentage
A downward trend in operating margin could indicate that _______________________________________________________________________________________________________________________________________
What is the formula used to calculate the Net Profit Margin percentage
What does the net profit margin tell a company ________________________________________________________________________________________________________________________________________
What is the formula used to calculate Return on Assets (ROA)
List the two ways that ROA be too high?
What is the formula used to calculate Return on Equity (ROE)
ROE is a good indication of whether the company is capable of _________________________________________________________________________________________________________________________________
What is operating leverage? __________________________________________________________________________________________________________________________________
What is financial leverage? __________________________________________________________________________________________________________________________________
What is the formula used to calculate the Debt-To-Equity ratio (D/E)
What does a D/E greater than one mean?
What is the formula used to calculate the Current Ratio?
A current ratio that is too high can indicate __________________________________________________________________________________________________________________________________
What is the formula used to calculate the Quick ratio?
What is the formula used to calculate Days in Inventory (DII)?
What is the formula used to calculate Inventory Turns?

23 The lower the DII and the higher Inventory turns indicates ____________________________________________________________________________________________________________________________________

24.What is the formula used to calculate Days Sales Outstanding (DSO)?

Careful management of DSO can ____________________________________________________________________________________________________________________________________
What is the formula used to calculate Days Payable Outstanding (DPO)?
Watching DPO is a way of ensuring that the company ____________________________________________________________________________________________________________________________________
What is the formula used to calculate Property, Plant and Equipment turnover (PPE)
What affect does leased property have on the PPE calculation?
What is the formula used to calculate Total Asset Turnover?
What is the formula used to calculate Earnings Per Share (EPS)
What is EBITDA?
What is the formula used to calculate the Price-to-Earnings ratio (P/E)?
Historically, most businesses have traded in public markets at P/E ratios of __________________

Expert Solution

The power of ratio lies in the fact that:

Numbers in financial statements does not reveal the whole situations about the company. ratios can be used to compare with previous years to know exact position of the company. Ratios tells the relationship between one number with another number

Three ways to write a ratio:

Three ways to write a ratio is using a colon (: ) between twoo number like 3:6 . second ways fraction like 3/6 and the third way is with the word like 3 to 6

What are the four categories of ratios that managers and other stakeholders use

Financial ratios are broken into four categories

1. liquidity

2. Leverage

3. Operating efficiency

4. Profitability or return on investment

What is the formula used to calculate the gross margin percentage?

[Gross Profit/sales] x 100

A negative tend in gross margin typically indicates

Gross margin turns negative when the cost exceeds revenue. when it turns negative, it is companies inability to control the costs. some times it may be due the beyond the control of company’s management

A downward tend in operating margin indicates

company is experiencing the higher operating costs than the sales which could not be overcome by increase in customers or with higher prices

formula used to calcualte net profit percentage

Net profit/ sales x 100

what does net proft margin tell a company

It shows how effectively the company is operating. it helps to compare the total profits with the total amount come s in.

As per our guidelines, when there are more than 4 subquestions, we are allowed to answer first four questions.please kindly post the unanswered questions again

jeff jeffy answered 1 year ago

What is Power ? Define it 2 ways. What are the 2 main uses for power?...

What is Power ? Define it 2 ways. What are the 2 main uses for power? Discuss how power is used for planning a research study. Why is it important to maximize power?What is the symbolic formula that shows this relationship?How strong should the power of a potential study be? How do researchers determine the power of a potential study?

Benjamin Disraeli once said ‘there three sorts of lies: lies, big lies and statistics.’ If one...

Benjamin Disraeli once said ‘there three sorts of lies: lies, big lies and statistics.’ If one of the co-founders (Jevons) claim that for economics to be an exact science, a perfect system of statistics is necessary, while the other co-founder (Walras) rejects the use of statistics, even though both praise mathematics and quantative analysis, how to resolve this contradiction?

Introduction to Ratios The ratios we discuss and the ways that we calculate them are typical...

Introduction to Ratios The ratios we discuss and the ways that we calculate them are typical of the way companies or analysts may use ratios to analyze a business but they are not necessarily “the correct way” and other ratios and methods are not necessarily incorrect. The key things that you want to do when you use ratios are to try to use amounts that can give an insight into the business (such as EBIT per square foot, as we...

What theoretical explanations exist for the fact that there are three generations of leptons and quarks?...

What theoretical explanations exist for the fact that there are three generations of leptons and quarks? I'm not so much asking why there are exactly 3 generations, but rather what makes electron, muon and tau differ. Also, since the three families of quarks don't have to be a priori related to the three families of leptons, I'm interested in answers for either quarks, leptons, or both.

What are three classifications of ratios and which specific ratios fall into each classifications? Please explain ...

What are three classifications of ratios and which specific ratios fall into each classifications? Please explain What do the different ratios tell us about an organization? Please explain Which ratio do you think is most important? How would you use this ratio? Please Explain

List and describe three ways that increasing N can increase power in any t test.

2.Review the difference between fact and opinion. Write three fact statements and three opinion statements about...

2.Review the difference between fact and opinion. Write three fact statements and three opinion statements about your selected device(smart phone). put references

What are specific ways to limit the potential for power abuse in health care organizations? What...

What are specific ways to limit the potential for power abuse in health care organizations? What specific human resource strategies and transparency mechanisms could be created within hospitals or physician practices, for example, that would help prevent any stakeholder, particularly the top leaders of an organization, from pursuing self-interested goals in suspect ways?

What is personal power? Discuss ways you might increase your personal power through the bussines world...

What is personal power? Discuss ways you might increase your personal power through the bussines world 300 words no copy and paste

In what ways, if any, are contemporary workers subject to the arbitrary power of their employers/managers?...

In what ways, if any, are contemporary workers subject to the arbitrary power of their employers/managers? Is being subject to such power reason for concern? What sorts of institutional reforms could mitigate such capacity to wield arbitrary power? Explain.